10 KPIs For Measuring The Success Of PPC Campaigns

Online marketing campaigns such as PPC are an essential investment for growing your business on the internet. It requires a great deal of skill, research, and analysis to avail the best benefits of such campaigns. At the same time, you should be able to measure their performance and compare it with predefined standards so that they can be tweaked for the better. Performance indicators are used for the purpose of measuring the efficacy of the campaign and seeing how well it is working. Also known as Key Performance Indicators (KPIs), they play a key role in providing quantitative and accurate information related to the campaign. They help you to align with the short-term and long-term business plan and objectives. Here are the 10 KPIs that are useful for evaluating the success of PPC campaigns.

Clicks: As the name implies, clicks measure the number of users who have clicked on the ad. Clicks are an early indicator of a campaign success and give a fair idea of where it is taking your business. However, you cannot consider this parameter in isolation and will need to study it in relation to other indicators too.

Click-Through Rate: Another important KPI for a PPC marketing campaign is click-through rate, popularly known as CTR. It addresses the number of people who see the ads and like them enough to click them. CTR measures the effectiveness of the ad copy. It is calculated by dividing the total number of clicks and a total number of ad impressions.

Cost Per Click: Cost Per Click (CPC)measures the spending on each click on the ad. This KPI model is based on clicks made in the ad. The advertiser needs to pay only when the user clicks and there is no need to pay anything unless there are clicks. Knowing the cost of every single click can help you to spend more wisely on the campaign. It can be calculated by dividing the total cost of advertising by total number ads clicked.

Impressions: Impressions are the number of people who see the ad when it is live. They indicate whether the ad is able to reach the expected number of audience. This is the key metric that you should focus on if you are targeting on creating brand awareness rather than on gaining acquisitions.

Cost Per Acquisition: Cost Per Acquisition (CPA) is the measure of the cost of acquiring a customer through the PPC ad. It yields the numerical value of spending that needs to be done for getting a certain number of customers from your campaign. It is also known as Cost Per Action as the action is counted only when the user reaches the advertiser’s page to purchase the product being offered.

Click-to-open Rate: This KPI indicates the number of people who opened the ad and clicked on a certain part such as an image, button or text link. It reflects whether the ad copy’s design is good enough to persuade the user for taking the desired action.

Return on Investment: Return on Investment (ROI)is one of the most important KPIs of PPC campaigns as it is an actual measure of the effectiveness of the investment you make in them. It is a ratio expressed as a percentage and enables you to keep control of the investment in the campaign.

Average Order Value: Average Order Value (AOV) is the amount that customers spend per purchase. Factors such as sales, promotions, and loyalty directly influence this KPI. A low AOV is an indicator of poorly performing PPC campaign and suggests that some changes be made in the ad copy, landing page or keywords.

Average Position: Another KPI that tells about the campaign’s efficacy is the average position of the ad on the results page. A high position is likely to fetch a greater number of clicks and create a winning campaign.

Conversion Rate: Conversion refers to the process of visitors completing the transaction to get converted into buyers. With conversion rate, you learn about the ad clicks which lead to conversions. This KPI gives an actual understanding of the ads leading towards PPC goals.

Considering that the KPIs for PPC campaigns are complex, professional PPC management services can help get traffic to your business website. These marketing experts can help you frame a result-oriented PPC strategy with the use of right keywords and well-designed ad copy and landing page. With this, it becomes possible to get the best results within the shortest span of time.